Glastonbury leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Glastonbury will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Glastonbury,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Glastonbury valuers.
Freddie owned a conversion apartment in Glastonbury on the market with a lease of just over sixty years left. Freddie on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2012 we were called by Mr and Mrs. U Howard who, having purchased a one bedroom flat in Glastonbury in August 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in Glastonbury with 100 year plus lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed on 14 September 2086. Considering the 60 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £25,700 and £29,600 not including expenses.
Mr Y Norbert moved into a one bedroom flat in Glastonbury in January 1999. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Glastonbury with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed on 15 May 2106. Considering the 80 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.